Zeev's Turnips Patch-No Politics (ZEEV)

[Bacchus_II]

Could you explain me exactly what happen when I short a stock?

To me it's just like I create a secondary offering on that stock except that it's not the company that receive the money, it's me.

If the stock goes too high I will cover but probably an equivalent number of short sellers will provide the shares for my covering, doing a better move than mine. Shortsquize occur on extremely rare circumstance like take over of the Co.

Now why naked short sell is not permitted is something that bug me. Why it's not permitted? Why only the current float is available for shorting? I don't know. When I borrow the share to my broker to make SS the buyer side will receive those shares and those share are going to be available to short for this broker’s client. So how come they say a given share can only short once at any time. How they ensure that across broker?